A recent IRS National Office reorganization gives examining agents
and IRS appeals officers an opportunity to get IRs National Office
advice without going through the usual technical advice memorandum (TAM)
procedures.

In the reorganization, tax litigation attorneys were merged with
the existing technical structure. The old technical structure included
attorneys responsible for rulings, regulations and TAMs. Under the new
structure, the tax litigation attorneys will be engaged in a function
called "field services." One purpose of this function is to
give IRS examining agents and appeals officers an opportunity to
informally seek the advice of attorneys experienced in looking at tax
cases from the standpoint of potential litigation.

Many practitioners object to the introduction of litigation
specialists to the examination process. This is not new, however, and
has long been routine in the large case program. Since it is unlikely
to go away, practitioners should be aware of this new informal process
for a number of reasons.

First, it can be used to the practitioner's advantage when
requesting that the agent or appeals officer seek IRS National Office
technical advice, and the agent or officer objects to the potential work
and delay caused by the request.

Second, if the agent or appeals officer has sought and obtained
advice, it is important to know that there is no requirement that the
agent or appeals officer advise the taxpayer (or his representative)
that the advice has been sought or obtained. There also appears to be
no requirement that the agent or appeals officer follow the informal
recommendation of the IRs National Office field services group.
Accordingly, while the IRS National Office would have rendered informal
advice favorable to the taxpayer, unless the practitioner asks for it,
he might not find out about it.

Third, as presently structured, the rendering of informal advice by
the field services attorneys does not preclude the requesting of formal
National Office technical advice. This means that if the informal
advice was favorable, and the agent or appeals officer does not want to
follow it, the practitioner can ask the agent or appeals officer to
formally request IRS National Office technical advice, which is binding
on the Service if favorable to the taxpayer. If the informal advice was
unfavorable, the agent or appeals officer may be asked to formally
requested IRS National Office technical advice to give the practitioner
the opportunity to persuade the IRS National Office to accept his
client's point of view.

COPYRIGHT 1992 American Institute of CPA's
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